“Deposit your lawfully earned money fearlessly. No ceiling on deposits.”- Income Tax Officials

PIB, KalimNews, 17th November 2016: The Income Tax Department today made it clear that those who have earned their money by lawful means and with proper accounting need not worry while depositing it with the Banks. There is no upper limit for the amount to be deposited either.

Addressing a day long Conference on the new amendments brought in the Income Tax Act and Income Tax Rules in Gangtok today, Shri Vikram Sahay, Director of Income Tax(Intelligence and Criminal Investigation), Kolkata told that the Banks have to report about each and every large Bank transaction to the Income Tax Department. Similarly, auto dealers, jewellers etc. too are required to report about all such transactions in their Annual Information Return or Statement of Financial Transactions. But, this does not mean that these will necessarily attract Department’s action against the customers. The main issue is that the transaction amount must match the known sources of income of the person or the persons’ concerned, he clarified.

Underlining the need for everyone having a Permanent Account Number Or PAN, Shri Sahay said that both owning and quoting a PAN is beneficial to all.He said that PAN is essential for business transactions like opening a bank account and purchasing car, jewellery , properties etc.He said that quoting PAN is also mandatory for all the transactions above Rs.50,000/- .He made it clear that quoting PAN may save someone from Income Tax Department proceedings but those not quoting it for large transactions may invite such proceedings against themselves. Mr.Sahay said that those who do not have the PAN for any reason or reasons,may fill up a Form 60 available with the Banks or the car,jewellery,properties and other dealers, stating the reason or reasons for not having the same.He however, stressed that as per the new rules, even those, who do not have to file their Income Tax returns, are required to have a Permanent Account Number Or PAN.

Speaking about the new amendments brought in the Income Tax Act and Income Tax Rules, and Shri P.B. Pramanik, Additional Director of Income Tax(Intelligence and Criminal Investigation),Kolkata told that as per the latest amendment in the Income Tax Rules 1962,notified by the Central Board of Direct Taxes,Ministry of Finance,Government of India on the 15th November 2016,Banks have to report the cash deposits exceeding Rs.50,000/- on a single day and aggregating to more than Rs.2.50 lakhs during the period from 9th November to 30th December 2016 in their Statement of Financial Transactions. Similarly, cash deposits aggregating to Rs.12.50 lakhs or more in one or more current accounts of a person or persons or Rs.2.50 lakhs in one or more accounts (other than a current account) of a person during the period from 9th November to 30th December 2016 too has to be reported by both the Banks as well as by the Post Offices in their Statements of Financial Transactions.

Shri Pramanik told that the Statements of Financial Transaction made during the period shall have to be furnished on or before the 31st of January 2017.He ,however, clarified that the Statements of Financial Transactions made before 9th November 2016 and after 30th December 2016 in the current financial year will be required to be furnished by 31st May 2017 .

Later, during their interaction with the gathering , Shri Sahay and Shri Pramanik told the businessmen, Hoteliers/Restaurant Owners, Auto Dealers, Jewellers and Tour Operators not to accept the old Rs.500/- and Rs.1000/- currency notes at all since they no more remain legal tenders now. They recommended for doing more and more online transactions instead of the cash transactions.